What happens to Active Franchise Cost Template if a Reclass happens in MFCS?

Scenario 1:

If we have a Fixed Cost Template to an item and the Department and Item has been defined in the Franchise Cost Template relationship? Will that be automatically updated when the item is reclassed? Or the Franchise Template will be invalidated and instead needs to be updated?

Scenario 2:

If the Franchise Cost Template is on Up-Charge or Retail Off and the Franchise Cost relationship is tied up to a particular dept/class, when items are reclassed, it means new Franchise Orders for that item will not be applied the Cost Template anymore, correct?

Thanks